- Droughts caused by El Niño threaten a three-year rice shortage.
- This phenomenon is causing the first signs of distress in Asia.
- Global impacts of El Niño include possible disruption of Australian wheat exports and possible sugar export restrictions by India.
El Niño threatens Asian rice market
Asian countries are facing a possible three-year El Niño-related drought. Thailand’s Commerce Minister fears a drop in rice production that could lead to domestic shortages. To counter this, he has tasked departments with monitoring and mitigating the effects of El Niño on key crops. Even worse, the El Niño challenges couples with recent Indian export restrictions and threaten the global rice market.
Global impacts of El Niño
The impact of El Niño, characterized among other things by increased temperatures in the Pacific Ocean, poses a significant threat to the Asian rice market. El Niño’s dry conditions can reduce production, tighten supply, and increase prices. Signs are already beginning to emerge in Asian countries that are sensitive to weather changes: Indonesia is already seeing a drop in production, Vietnam is pushing for early sowing, and the Philippines is supporting growers in the face of rising rice prices.
El Niño, a natural climate phenomenon, is causing extreme weather around the world. The entire trading world could be affected. In Australia, there are an increasing number of areas experiencing severe rainfall shortages, which could seriously affect, for example,wheat exports, and Australia is one of the world’s largest wheat exporters. The Indian government, in turn, could cut sugar exports due to poor monsoon rainfall.
In the commodity market, it is important to stay up-to-date. Foodcom S.A. can help you do that – visit our blog to read our World News and subscribe to our newsletter!